Wednesday, February 15, 2017

PHINMA Energy defers Sual coal-fed power project

On overcapacity
forecasts for Luzon grid, PHINMA Energy Corporation has indicated that it shall
defer the implementation of its proposed 900-megawatt Sual coal-fired power
facility in Pangasinan.

PHINMA Energy President
Francisco L. Viray said they are now looking at 2023 to 2025 timeline as to
advancing the coal plant project’s construction.

He said this is still
aligned with the company’s target to double capacity in 10 years if commercial
commissioning could be achieved by 2025-2026. In fact, within that timeframe,
the company has penciled in reaching capacity portfolio of just 584 megawatts.

Viray explained that
they re-assessed the numbers, and they have seen that “it is not feasible to go
ahead with the project because of projected capacity surplus.”

But with the economic
growths being aspired for by the Duterte administration, expectations are for
energy demand base to expand – hence, it warrants capacity addition again prior
to or just at the turn of the decade.

Previously crunched
numbers placed the initial investment for the Sual project at roughly $1.0
billion – with plans to start the capacity on a smaller scale, instead of
having a single phase of 900MW.

PHINMA Energy’s
recently completed generating capacity had been the two-phased 270MW South
Luzon Thermal Energy Corporation (SLTEC) project, that is now its three-tiered
joint venture deal with AC Energy Holdings of the Ayala Group and Japanese firm
Marubeni Corporation.

But while it
temporarily stalls its greenfield coal-fired power development, PHINMA may
still move headway with its planned 40MW Sibunag wind power project in
Guimaras, serving as expansion of its existing 54MW San Lorenzo wind farm in a
proximate site.

Viray said they will
pursue that once clearer rules are out on the Renewable Portfolio Standards
(RPS) for the RE industry – that is in consideration of the fact that the
sector can no longer count on a third round of feed-in-tariff (FIT) incentives.